BILL ANALYSIS AND FISCAL IMPACT REPORT	Page 1 of  1

DATE:  March 8, 2001	Submitted by: TAXATION AND REVENUE DEPT.
	T. GLENN ELLINGTON, SECRETARY
BILL NUMBER: HTC Substitute for HB - 925

SPONSOR: House Transportation Committee

BILL SHORT TITLE: Border Motor Carrier Act

DESCRIPTION: This bill defines a border commercial zone with reference to federal law or regulation. Unlike the original version of this bill, the border commercial zone may be more extensive than just Dona Ana and Luna counties, and may be less extensive than the entire counties. The federally defined area is, in effect, a transportation free trade zone. Providing that the Mexican commercial motor vehicle is properly registered and licensed (although not necessarily insured) in Mexico, the vehicle may transport goods and persons across the international border between New Mexico and the United Mexican States. If the truck moves outside the federally defined zone, it may be considered unregistered. If a Mexican commercial motor vehicle is cited for violation of safety or weight laws, the bill apparently allows the citing law enforcement officer to simultaneously cite the vehicle for being unregistered.

EFFECTIVE DATE: not stated – 90 days after adjournment (June 15).

FISCAL IMPACT: probably none. This is not a revenue bill, but a device to restrict Mexican truckers to the areas defined in federal law or regulation under NAFTA.

ADMINISTRATIVE IMPACT: none on the Department. All enforcement of the provisions of this bill will be conducted by Motor Transportation Division of DPS.

TECHNICAL ISSUES
1.	No one in the Department is sufficiently familiar with the provisions of NAFTA to state with any certainty whether the add-on provision of the bill violates any provision of NAFTA. This is the provision on page 2, lines 7 – 9, “… operating pursuant to the exemption under this section may be considered unregistered if the motor vehicle is operated … in violation of United States law.”
2.	 The bill makes no provisions for the payment of weight-distance tax for travel within or without the zone. This should be clarified.

OTHER IMPACTS AND ISSUES:
1.	There are substantial concerns among law enforcement officials that Mexican trucks are not as safe as their American counterparts, that the drivers are not as well trained or limited by the same driver time limit rules and other concerns. Perhaps more pertinently, some worry that Mexican trucking firms have a substantially lower cost structure – with non-union labor and less safe trucks, thus potentially jeopardizing reasonably high-wage jobs and remunerative routes for US workers and firms.